Do You Know that?

Director stand in a fiduciary position with the Company and Director will be held liable if Director do not act diligently in discharging his/her duties.
Even Non-Executive and Independent Directors are liable under section 149 (12) of Companies Act.
The directors are responsible for devising proper systems to ensure compliance with the provisions of all applicable laws and to ensure that such systems are adequate and are operating effectively (Section 134)
Director will attract personal liability under section 66(2) of IBC Act.
Director will be held personal liable for cheque bouncing under section 141 of Negotiable Instrument Act.
Director shall be disqualified to be appointed as Director of the Company Section 164 of the Companies Act, provides the conditions under which a person can be disqualified to be appointed as a director of the Company. For example Directors disqualification may arise due to non-filing financial statements, or annual return for three consecutive years, failed to repay deposits, convicted by court, barred by law etc.
Apart from Companies Act, Directors may also face liability under other Indian laws for offenses under the Income Tax Act of 1961, violation of foreign exchange regulations, breach of securities regulations, nonpayment of provident fund contributions, violation of the Shops and Establishments Act, or food adulteration could result in liability that may not always be limited to the executive directors.
Director can hedge the liability.
– Taking informed decision
– By obtaining Directors and Officers (D & O) liability insurance
– Director indemnification clause in Directors / Employment Agreement
– Ensuring that any objection raised by Director at a board meeting is duly recorded in the minutes and any minutes received by him should be duly read.

Our Services

Affluence provides information about the state of affairs of the Company which assist Director to take decision after proper diligence and insights about the Company and thereby discharge duty and obligation casted on Director.

Affluence further guide you for D & O policy, Indemnification of liability through Contracts etc.